KJ Enterprises Estimates That It Takes, on Average, 3 Days

question 122

Multiple Choice

KJ Enterprises estimates that it takes, on average, 3 days for their customers' payments to reach them, 1 day for the payments to be processed and deposited by their bookkeeping department, and 2 more days for the checks to clear once they're deposited. What is their collection float?

• A) 1 days
• B) 2 days
• C) 3 days
• D) 6 days

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Definitions:

Hypothesis

A potential explanation that needs to be tested.

Potential Explanation

A possible reason or rationale that could clarify or account for a specific phenomenon or situation.

Yardstick Approach

A method of decision-making that involves comparing alternative actions against a predefined standard or "yardstick."

Recycling Program

An organized effort to collect, process, and repurpose waste materials to reduce environmental impact.